Vienna Insurance Group increases premiums in the first half of 2020, profit reaches 200 million Euro

Vienna Insurance Group announces “satisfying results” in the first half of 2020, despite the ongoing COVID-19 pandemic.

“In spite of the exceptional situation in which the world finds itself because of COVID-19, we achieved an increase in premiums, an improved combined ratio due to a reduction in claims expenses and lower weather-related claims, and a solvency ratio of 183%. Despite the goodwill impairments, we reported a solid result before taxes of slightly more than EUR 200 million,” said General Manager Elisabeth Stadler.

Premium volume was greatly affected by the different lockdown regulations in VIG markets, causing significant decreases in new business, particularly in the second quarter. At the same time, it could be observed that in the subsequent loosening phase, premiums returned to levels similar to before the beginning of the COVID-19 pandemic in some markets.

The financial result (incl. the result from at equity consolidated companies) amounted to EUR 388 million in the first half of 2020, 8.3% below the previous year. The result before taxes of EUR 201.2 million was 21.8% lower than in the previous year.

The whole economic development of 2020 is massively impacted worldwide by the effects of the COVID-19 pandemic. “In this phase, it remains impossible to estimate how long economies will be confronted with this exceptional situation and what effects the capital markets, interest rate developments and political and regulatory measures will have on the financial services industry. We are therefore currently refraining from giving a business outlook for 2020,” the company said.